Reliance Retail extends deadline by 6 months to complete Future buyout

'Reliance Retail Ventures Limited extended the timeline for Long Stop Date from September 30, 2021 to March 31, 2022,' says Future Retail

Reliance Retail Ventures Limited has extended the date for completion of its deal with Future Group by another six months to March 31, 2022 owing to the protracted legal battle with Amazon. 

"Reliance Retail Ventures Limited (“RRVL”) extended the timeline for Long Stop Date from September 30, 2021 to March 31, 2022, which has been duly acknowledged by Reliance Retail and Fashion Lifestyle Limited, wholly owned subsidiary of RRVL," Future Retail said in a stock exchange filing on Friday.  A long stop date is a date that is agreed upon for all deal conditions to be met and the transaction is completed.

In August last year, Reliance Retail Ventures Ltd (RRVL) had said it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group for Rs 24,713 crore.

The deal has been contested by Amazon, an investor in Future Coupons that in turn is a shareholder in Future Retail Ltd.

In August 2019, Amazon had agreed to purchase 49 per cent of one of Future's unlisted firm, Future Coupons Ltd (which owns 7.3 per cent equity in BSE-listed Future Retail through convertible warrants), with the right to buy into the flagship Future Retail after a period of 3 to 10 years.

After Future's deal with RRVL, Amazon had dragged Future into arbitration at the Singapore International Arbitration Centre (SIAC).

In October, an interim award was passed by the Emergency Arbitrator (EA) in favour of the US e-commerce major that barred Future Retail from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party.

Amazon and Future have also filed litigations in Indian courts, including the Supreme Court, on the issue. The apex court had recently ruled in favour of Amazon by holding that the EA award was valid and enforceable under Indian laws.

Notably, Future Retail Ltd, on August 28, said it has approached the Supreme Court against an order passed by the Delhi High Court to maintain status quo in relation to the deal and directing it to enforce the order of the Singapore-based EA.